6 takeaways from Jamie Dimon’s letter to shareholders
A pandemic. A recession. Nationwide unrest over racial injustice. The events of the past 12 months have demonstrated with crystal clarity that banks have a role to play in society that goes far beyond accepting deposits and granting loans.
Understanding what it means to be good corporate citizens is now more essential than ever for banks – and that involves more than philanthropy, said Jamie Dimon, CEO of JPMorgan Chase, in his latest letter to shareholders. In some cases, that means engaging at the national level on certain political issues, he said.
“We get involved at this level because companies (like ours) have an extraordinary ability to help,” said Dimon. “We are helping not only through funding, but also through the development of strong public policies, which can have a greater impact on society than the collective effect of companies which are responsible community citizens at the local level.”
In a 66-page letter released Wednesday, Dimon said he expected the US economy to recover from the pandemic-induced recession, but he criticized regulators for imposing capital rules which, according to him, prevented the industry from doing more to support the economy over the past year.
He also sent a message to his fellow bankers about the threat of their dominance from big tech companies and forward-thinking fintech companies. “While I am still convinced that JPMorgan Chase can grow and deliver good returns for its shareholders, the competition will be intense and we need to be faster and more creative,” Dimon wrote.
Here are six takeaways from his letter: